Budget 24: Tax Administration

In this last post in our series of insights into the recent Budget, we take a quick look at some of the tax administration measures that were introduced by the new Chancellor. 

As always, however, you should contact us before taking any action as a result of the contents of this summary, or if you need any further help or support.

 
Making Tax Digital for Income Tax Self Assessment

The government is committed to delivering Making Tax Digital for Income Tax Self Assessment, which is supposed to start in April 2026. The government will expand the rollout of the programme to those with incomes over £20,000 by the end of this Parliament and will set out the precise timing for this at a future fiscal event.

Tackling tax non-compliance in the umbrella company market

To tackle the significant levels of tax avoidance and fraud in the umbrella company market, the government will make recruitment agencies responsible for accounting for PAYE on payments made to workers that are supplied via umbrella companies.

Where there is no agency, the responsibility will fall to the end client business.

This will take effect from April 2026. The measure will protect workers from large, unexpected tax bills caused by unscrupulous behaviour from non-compliant umbrella companies.

 
HMRC initiatives

HMRC has announced a variety of compliance initiatives, which include the following: 

• investing in additional HMRC compliance staff and debt management staff
• modernizing HMRC debt management IT systems
• pre-populating tax returns with Child Benefit data (for the purposes of the High Income Child Benefit Charge)

HMRC interest increase 

An unexpected announcement was the increase of late payment interest rates charged by HMRC on unpaid tax by 1.5% taking the rate from 7.5% to 9.%. 

As well as impacting those with unpaid tax, this increase will also hit businesses with cashflow issues and those waiting on probate hard. Individuals and businesses need now to urgently reassess their finances and or consider requesting a Time to Pay arrangement with HMRC.

Further Budget insights 

You can find further insights in respect of the recent Budget here:  

• Budget 24 Summary: Income Tax & Tax on Savings 
• Budget 24 Summary: Capital Gains Tax, Inheritance Tax, Pensions & Stamp Duty 
• Budget 24 Summary: Business Tax, NICs & VAT 
• Budget 24 Summary: Company Vehicles & Business Rates & Relief 
• Budget 24 Summary: Non-Doms & Resident Foreigners 

Please get in touch for advice before you take any action in respect of the Budget or contents of this article.